Hurricane Energy's (LON: HUR) share price is rallying on Monday after the company said production and water cut at its Lancaster field are expected to reach previous levels seen before the shutdown.
The Aoka Mizu underwent its scheduled annual maintenance shutdown during July, with production resuming on 27 July.
By 14 August, Lancaster was producing 11,500 bopd from the P6 well alone with an associated water cut of 29%.
Prior to the shutdown in early July 2021, the P6 well was producing at 10,900 bopd with an associated water cut of 32%.
As of 31 July, Hurricane had net free cash of $122 million, compared to the last reported figure of $134 million as of 30 June.
However, there were no liftings of Lancaster crude in July, and as a result, no revenues were received during the month.
“The Company believes that net free cash provides a useful measure of liquidity after settling all its immediate creditors and accruals and recovering amounts due and accrued from joint operation activities, outstanding amounts from crude oil sales and after settling any other financial trade payables or receivables,” Hurricane said in a statement.
The company's shares rose to a high of 2.498p following the announcement after opening up down on the day at 2p. They are currently up 4.35% at 2.4p.
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